If a bank pays a 6% APR, with monthly compounding, on deposits, what effective annual rate does the bank pay?
a. 6.17%
b. 6.71%
c. 5.10%
d. 6.59%
e. 5.91%
Ans: a. 6.17%
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Which of the following audit procedures does not address existence/occurrence for accounts receivables and sales?
a. Trace bill of lading to sales invoice and sales journal. b. Confirm balances of unpaid invoices with customers. c. Examine subsequent collection. d. Scan sales journal for duplicate entries.
The FIFO method of process costing will produce the same cost of goods transferred out amount as the weighted average method when
a. the goods produced are homogeneous. b. there is no beginning Work in Process Inventory. c. there is no ending Work in Process Inventory. d. beginning and ending Work in Process Inventories are each 50 percent complete.
Expectation interest can best be described as money spent in reliance upon the agreement.
Answer the following statement true (T) or false (F)
Which of the following is most likely to be an example of a good-dominated product?
A. Purchasing a sewing machine with a warranty B. Leasing a sewing machine C. Hiring the services of a tailor D. Renting a sewing machine